Scatec and its local partner Nizam Energy have closed financing for the 150 MW Sukkur solar power project with a total investment of about USD 100 million.
FMO, the Dutch development bank, Faysal Bank, Bank of Punjab and PAK Kuwait Investment have signed credit agreements for the non-recourse debt financing of the Sukkur project. Half of the debt quantum is provided by FMO under a credit facility of USD 39 million and the other half by the three local commercial lenders under PKR denominated credit facilities of an aggregated PKR 2.2 billion. The credit facilities cover up to 75% of the total project cost.
“We are proud to complete financing of our first project in Pakistan together with our partners. The Government plans to increase the share of renewable energy to 30% by 2030 and we look forward to supporting this growth by delivering 305 GWh of clean power annually. This is enough to cover the electricity needs of about 150,000 households and will contribute to avoid more than 106,000 tonnes of GHG emissions per annum,” says Raymond Carlsen, CEO of Scatec.
The Sukkur project portfolio located in the province Sindh, southeast in Pakistan, was awarded a “costs plus tariff” by the National Energy Power Regulatory Authority (NEPRA) early in 2020. Scatec and its local partner, Nizam Energy are now working to start construction within first half 2021. Scatec will provide engineering, procurement and construction (EPC), and provide Operation & Maintenance, as well as Asset Management Services to the power plants. Scatec will hold 75% of the equity, with Nizam Energy holding the remaining 25%.